Not All Surprises Are Good, 10 Surprise Fees You Were Not Aware Of
A dream home; we all want one but the liability of the EMI is like ‘India’s most unwanted’! Well, you would be better off to accept the truth – Dream homes and EMIs go together hand in hand. So if you are contemplating to buy a home, be ready to pay equated monthly installments on the home loan you take. Also, keep your heart strong as there will be some Surprise Fees and other charges you might have to pay in addition to the EMI. Let us enlist a few so that such Fees and Charges are no more a surprises for you –
- Application fee – banks charge some application fee that includes the cost of verification and preliminary charges before the loan is sanctioned. So be ready to shell out money between Rs 1000-5000 for such fee.
- Processing fee – Banks charge a nominal percentage of loans as processing fee.
- Technical evaluation fee – In matters of property, a technical team is hired to do the evaluations. So expenses related to such processes come under technical evaluation fee and borrowers have to pay this as well.
- Legal fee– Home loan, like other loans, involve many legal formalities. Owing to some legal expenses, you have to bear the legal charges as well.
- Administration fee – All such expenses that are incurred by the bank once your loan is sanctioned come under this head. So, another extra expense up on cards for you!
- Notary fees – Well, this type of fee is generally levied on BRIs as they have to get their KYC and the Power of Attorney notarised by the Indian embassy or a local notary available abroad. All expenses related to this are to be borne by the borrower under the Notary Fee head.
- Cost of Indemnity – This is one extra expense for the borrower where he needs to pay to indemnify the lender for certain risks, for instance the risk of a delay in receiving an approval of the property or some hike happening in property tax in times to come.
- Documentation fee – There is some documentation fee also which includes all the expenses of documenting the loan agreement.
- Loan tenure change fee – In case the borrower wants to change the loan ternure, they have to pay some fee for that.
- Late Payment Charges – And for all those borrowers who are always late in their credit repayments. Late Payment charges of Rs 250 + 2% additional interest as penalty on amount due is charged by the bank.
It is always good to be aware about all these fees and charges so you are prepared when the total is more than you expected! Unfortunately fees are something you must first endure before you can kick back and enjoy your new dream home.